For example, in this case Spain did everything right. They even regulated their banks so they wouldn't make risky loans. But they couldn't stop German banks making the same loans - so does this mean that regulatory authority over banking should be seceded to the EU too?
The were some talking about burst the bubble in 2004, but Zapatero's government never implement the reforms. The Spanish prime minister regret later about not bursting the bubble earlier.[2]
Spanish banks are well protected against loans because, the asset pledge as collateral" clause is rarely use in Spain.
[1] http://www.businessweek.com/news/2011-12-08/sabadell-buys-ca... [2] http://www.elmundo.es/elmundo/2011/06/28/suvivienda/13092749... (Spanish)